FYI: Cash spent by S&P 500 companies is expected to surge 19% this year to $2.66 trillion, supported by strong earnings growth, reduced tax rates, and cash repatriation from overseas. That’s the fastest pace since 2011 and will likely to continue in 2019, according to a Goldman Sachs report published.
S&P 500 companies will boost cash spending by another 13% in 2019 to a total of $3 trillion, writes Goldman Sachs analyst Cole Hunter, and it will be evenly distributed. Just over half of the spending, 51%, will be dedicated to investment for growth–such as capital expenditures, R&D, and M&A–and 49% will be returned to shareholders through buybacks and dividends.
Regards,
Ted
https://www.barrons.com/articles/s-p-500-companies-will-spend-2-7-trillion-in-cash-this-year-1538991001?mod=hp_DAY_6
